Will Enforcement Directorate probe Paytm Payments Bank? PPBL issues clarification, says, ‘ no probe…’
In light of recent discussions surrounding inquiries by the Enforcement Directorate (ED), Paytm Payments Bank clarified that no probe against Bank or One97 Communications Ltd by the probe agency. “One 97 Communications Ltd and Paytm Payments Bank operate with the highest ethical standards. We can confirm that neither we nor OCL’s founder-CEO have been the subject matter of investigation by the Enforcement Directorate regarding money laundering,” a spokesperson for Paytm Payments Bank said, news agency ANI reported.
ED to probe Paytm Payments Bank
On Saturday, Reuters reported that ED will probe Paytm Payments Bank if any fresh charges of fund siphoning are found.
“If there are any fresh charges of money laundering against Paytm by RBI, those will be investigated by Directorate of Enforcement as per the law of the land,” Reuters quoted Revenue Secretary Sanjay Malhotra.
The clarification comes amidst reports suggesting otherwise. “Occasionally, some merchants on our platforms have been the subject of inquiries, and we cooperate fully with authorities in such instances. We categorically deny any involvement in money laundering activities and believe fair and responsible journalism is crucial for accurate information dissemination,” the spokesperson added.
Further emphasizing the importance of accurate reporting, the statement continued, “We categorically deny any allegations suggesting our involvement in money laundering activities. We advocate for responsible reporting and stress the importance of relying on verified information for public dissemination.”
What led to a ban on Paytm Bank by RBI?
In a major action against Paytm Payments Bank Ltd (PPBL), the central bank earlier this week directed the lender to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.
According to various media reports, money laundering concerns and questionable dealings of hundreds of crores of rupees between popular wallet Paytm and its lesser-known banking arm had led the Reserve Bank of India to clamp down on Vijay Shekhar Sharma-run entities
The central bank has ordered PPBL to halt most of its business including taking further deposits, and conducting credit transactions after February 29.
-With agency inputs
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Published: 04 Feb 2024, 07:32 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.